just On Call - PepsiCo aims to lead bid to refresh cola category

PepsiCo is seeking the next Diet Coke to revitalise sparkling cola sales in North America, the company's boss has said.

PepsiCo chairman & CEO, Indra Nooyi, told analysts today (14 February) that despite a decline in cola sales and demand for lower calorie drinks, consumers still “love bubbles and the cola taste”. “We'd like to lead in innovation, Nooyi said, adding that there have been no major innovations in the category since Diet Coke.

Nooyi said the company is developing new sweeteners and flavourings that could “alter the trajectory of the cola business” in North America.

PepsiCo's chief said there is also still growth in carbonated soft drinks outside of colas in North America, with Mountain Dew posting increased volumes in its full-year results. Earlier this week, PepsiCo unveiled Kickstart, a Mountain Dew extension designed for the breakfast table.

On obesity concerns, Nooyi said the biggest challenge facing PepsiCo is “not to do anything stupid”. She said the company anticipated the issue and a few years ago moved to diversify its portfolio and research new technologies.

Meanwhile, Nooyi praised PepsiCo's Chinese New Year performance as “extremely attractive” and said the company's partnership with Tingyi in the country was “very strong”. PepsiCo signed a US$5bn deal with Tingyi last year.

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